Will rolling-back regulations help increase housing starts?

The executive order requiring a review of the Waters of the United States rule has pushed homebuilder confidence to a 12-year high. However, the rule has been suspended since its introduction in 2015 and the executive order will do nothing to solve labour shortages. Accordingly, we think it will do little to boost the number of homes being built. President Trump gave homebuilders cause for celebration when he signed an executive order requiring a review of the Waters of the United States (WOTUS) definitions in the Clean Water Act. The definitions introduced under the Obama administration extended the amount of land which qualified for federal protection, and therefore raised the cost of applying for permits in some areas. The potential roll-back was cited as a key reason why the NAHB measure of homebuilder confidence jumped to a 12-year high in March. But will that rise in confidence be followed by a rise in actual housing starts?